When your car breaks down unexpectedly, the costs of repairs can quickly add up. This leads many car owners to wonder: Is car repair insurance worth it?
While it promises peace of mind and financial protection, it’s important to weigh the benefits against the costs to determine if it’s a smart choice for you.
Car repair insurance can cover various repairs, from engine issues to transmission failures, but not all policies are created equal.
Some plans may only cover specific parts or types of repairs, while others offer more comprehensive coverage. So, knowing what is included in your policy is important.
In this blog post, we will examine car repair insurance and all the possible questions you might have on this insurance type before proceeding to buy a quote. Therefore, we implore you to read through to be enlightened.
What Is Car Repair Insurance?
Car repair insurance is a type of coverage that helps pay for repairs when your car is damaged or breaks down. Instead of paying for repairs out of your own pocket, you pay a monthly or yearly premium to an insurance company.
For example, if something goes wrong with your car, like an engine problem or a flat tire, you can file a claim with your insurance.
However, depending on your policy, the insurance company will cover some or all of the repair costs.
This insurance can give you peace of mind, knowing that you won’t have to pay a large amount for unexpected car repairs.
How Does Car Repair Insurance Work?
Car repair insurance works as a financial safety net for unexpected vehicle repairs. You can either add this coverage to your existing auto insurance policy or buy it separately from companies like Progressive and other insurance companies.
However, when you choose to get car repair insurance, you’ll select a deductible amount, which is the portion of the repair costs you agree to pay before the insurance kicks in. For example, you might choose a deductible of $250.
So, if your car breaks down and needs costly repairs, such as replacing the transmission, you would file a claim with your insurance provider.
In this case, if the repair costs $8,000, you would pay your deductible of $250. The insurance company would then cover the remaining $7,750.
Car repair insurance is generally affordable, often costing around $100 a year. Which means that this can be a smart investment, as it can save you significant money on expensive repairs.
Moreover, it helps you avoid financial strain by covering most of the repair costs, ensuring you don’t have to go into debt when faced with unexpected vehicle issues.
What It Covers And Does Not Cover
While car repair insurance covers a range of repair costs, there are certain things it doesn’t cover. However, knowing what it covers and does not cover is a great idea before going ahead to purchase the policy. So, here are a few things this insurance policy covers and does not cover:
What It Covers
- Mechanical failures
- Electrical failures
- Unexpected breakdowns
- Wear and tear
- Transmission repairs
- Engine repairs
- Brake repairs
- Fuel system repairs
- Exhaust system repairs
- Cooling system repairs
What It Does Not Cover
- Accident damage
- Routine maintenance
- Negligence-related damage
- Theft
- Vandalism
- Damage due to natural disasters
- Modifications or aftermarket parts
- Damage caused by racing or off-road driving
The above stated are general things this insurance covers and does not cover.
However, your policy might have coverage of the general coverage excluded, so it’s important to read the specific terms of your policy to understand exactly what is covered and what isn’t.
Besides, this will help you make informed decisions about your car repair insurance.
Is My Vehicle Eligible for Car Repair Insurance?
To determine if your vehicle is eligible for this type of insurance, consider several key factors. First, the age of the vehicle matters; many providers have restrictions on how old a car can be to qualify for coverage, with newer vehicles often more likely to be accepted.
Additionally, the make and model can influence eligibility, as some insurance companies have specific requirements based on the type of car, with luxury or exotic models sometimes facing different criteria.
The condition of your vehicle is also important; it should be in good working order without any pre-existing issues, and insurance companies typically require a vehicle inspection to assess its state.
Mileage can play a role as well, as some insurers may impose limits, making vehicles with higher mileage less likely to qualify.
Lastly, your previous insurance history can affect eligibility; a record of frequent claims or lapses in coverage might impact your ability to secure car repair insurance.
Insurance Companies That Offer Car Repair Insurance
Here are some companies that offer this type of insurance:
- Progressive
- Geico
- Allstate
- State Farm
- Nationwide
- Esurance
- Farmers Insurance
- Liberty Mutual
- MetLife
- American Family Insurance
These companies may provide car repair insurance as part of their auto insurance policies or as separate coverage options. So, it’s best to check with each provider for specific offerings and details.
Bottom Line
Car repair insurance can help protect you from high repair costs when your vehicle breaks down. It covers many mechanical and electrical issues, so you won’t have to pay for unexpected repairs out of pocket.
However, not all policies are the same, and some damages, like those from accidents or regular maintenance, are not covered.
Therefore, before buying, check your policy details and see if your vehicle qualifies based on its age and condition.